Financial woes give way to political ones in Ireland -

Financial woes give way to political ones in Ireland

Coalition government faces mounting pressure to resign as bailout package looms


The coalition government in Ireland is facing pressure to step-down on Monday after it agreed to negotiate an EU-led bailout package to rescue the country’s ravaged economy and indebted banking system. On Monday, two independent MPs helping to prop up the coalition said they could not commit to supporting the budget unless the opposition had a hand in drafting it. Now, the two main opposition parties—Labour Party and Fine Gael—have called for an immediate general election. Labour leader Eamon Gilmore said it was “essential that we have a new government elected as soon as possible.” Michael Lowry, one of two independents who currently prop up the government, said it was “highly unlikely” he would “support [that] budget,” indicating there should be an election before a budget was agreed. Jackie Healy Rae, independent for Kerry South, said he would “no longer support this government”, and that it was “very very unlikely” he would support the budget. Once known for its strong economic growth, the country has experienced a property bubble burst, leaving its banks with huge liabilities and pushing up the cost of borrowing for them and the government. These calls for a snap elections are adding to the instability in the country.

Financial Times


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